Exercise 17-3 On January 1, 2017, Coronado Company purchased 12% bonds having a

Question

Exercise 17-3
On January 1, 2017, Coronado Company purchased 12% bonds having a maturity value of $270,000, for $290,470.00. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Coronado Company uses the effective-interest method

to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.





Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit
Jan. 1, 2017




SHOW LIST OF ACCOUNTS




Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)
Schedule of Interest Revenue and Bond Premium Amortization
Effective-Interest Method

Date Cash
Received Interest
Revenue Premium
Amortized Carrying Amount
of Bonds
1/1/17 $
$
$
$

1/1/18
1/1/19
1/1/20
1/1/21
1/1/22



SHOW LIST OF ACCOUNTS




Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit
Dec. 31, 2017





SHOW LIST OF ACCOUNTS




Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit
Dec. 31, 2018


Click if you would like to Show Work for this question

Exercise 17-3 On January 1, 2017, Coronado Company purchased 12% bonds having a maturity value of $270,000, for $200,470.00. The bods provide the bondholders with a 10% yield. They are dated anuary 1, 2017, and mature January i, 2022, with interest receivable January 1 of each year Coronado Company uses the effectie-interest methed to allcate unamortized discount or premium, The bonds are classified in the held-to-maturity category Prepare the journal entry at the date of the bond purchase, (Enter answers to 2 decimal places, e.g, 2,525.25, Credit account tities are automatically imdented when amount is entered. Do not indent manualy, f no entry is required, select "No Entry for the account titles and enter o for the amounts. Date Account Titles and Explanation Debit Croedit Jan. 1, 2017 Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g Premium Carrying Amount 1/1/20 1/1/21 1/1/22 Prapare the journal entry to record the interest revenue and the amortization at December 31, 017. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles arde automaticaly indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Account Tities and Explanation Debit Credit Dec. 31, 2017 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018, (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are outomaticaaly idented when ?mount is entered. Do not indent manually. If no ntry is required, select "No Entry for the account titles and enter 0 for the amounts Date Account Titlkes and Explanation Dec. 31, 2018 Click if you would like to Show Work for this question

Explanation / Answer

Answer 1

Answer 2

Answer 3

01-01-2017 Bonds A/c Dr       2,70,000 Premium on Bond Dr          20,470 Cash A/c Cr       2,90,470

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.